Lai said the SCIC sold all capital in 896 firms, and part in 84 others, and collected over 47 trillion VND (2.04 billion USD) from selling purchasing rights in 19 businesses, or 4.2 times higher than the prime cost.

Also as of June 30, the SCIC managed a total of 144 companies with a total book value of nearly 29 trillion VND out of the chartered capital of upwards 99.5 trillion VND.

SCIC General Director Nguyen Chi Thanh said as a State capital management agency and shareholder of businesses, the corporation has increasingly improved its management capacity to bring optimal results to firms.

In the near future, it will work with competent authorities to fine-tune legal regulations on SCIC’s representatives in enterprises, including salaries, incentives and policies for them after State capital in firms are sold out.

It is also adopting modern technology to improve the efficiency of State capital management, the official said.

80 percent of State-owned economic groups earn profits

Up to 80 percent of the 19 State-owned economic groups and corporations under the management of the Committee for Management of State Capital at Enterprises (CMSC) earned profits in the first half of this year, fulfilling more than half of their yearly targets, according to the committee.

It said after receiving the groups and corporations from the Government and some ministries and agencies, it had separate working sessions with them to learn about their production and business, as well as their difficulties and proposals, thus optimizing capital and resources handed over by the State.

Nguyen Hoang Anh, CMSC President, said since its inception, the committee has been aware of its role in supervising, controlling and implementing State capital ownership, compiling and issuing development policies and strategies and serving as a bridge between State-owned enterprises (SOEs) and legislative agencies.

Anh described these enterprises as economic locomotives that contribute to regulating and orienting sectors in each period of time in a reasonable way, and realising the targets of socio-economic and business development.

CMSC Vice President Ho Sy Hung said between January and June, the committee continued to consolidate its organizational structure and staff, and perfect its internal management regulations.

It also ensured the administrative work and performed its functions, tasks and rights as a State ownership representative towards the above-mentioned groups and corporates, he added.

Regarding the restructuring, equitisation and State capital divestment, Hung said the committee has coordinated with competent agencies to remove bottlenecks during the process. However, the work remains sluggish.

Hung noted that among the 19 enterprises, 16 earned profits, five fulfilled 50 percent of yearly revenue targets, seven completed 50 percent of pre-tax revenue targets and four reached 50 percent of state budget contribution targets.

To achieve targets set for the last six months of the year, he suggested the committee focus on consolidating its organizational apparatus and staff, and closely coordinate with relevant agencies, groups and corporations in business administration, State investment capital and financial supervision, restructuring, equitisation, State capital divestment and initial public offering.

The CMSC, known as the “super committee”, made its debut in Hanoi on September 30, 2018.

The 19 groups and corporates under its management include the Vietnam National Oil and Gas Group (PetroVietnam), Vietnam Electricity (EVN), Vietnam National Coal and Minerals Holding Group (Vinacomin), Vietnam Post and Telecommunication Group (VNPT), MobiFone, Vietnam Airlines, Airport Corporation of Vietnam (ACV), Vietnam Railway, Vietnam Expressway Corporation (VEC), Vietnam National Shipping Lines (Vinalines), Vietnam National Petroleum Group (Petrolimex), Vietnam National Chemical Group (Vinachem), Vietnam National Tobacco Corporation (Vinataba), Vietnam Rubber Group (VRG), Vietnam National Coffee Corporation (Vinacafe), Vietnam Forest Corporation (Vinafor), Vietnam Northern Food Corporation (Vinafood 1), Vietnam Southern Food Corporation (Vinafood 2) and State Capital Investment Corporation (SCIC).

According to consolidated financial statements by December 31, 2017, the total value of State equity at the 19 groups and corporations topped 1 quadrillion VND (43 billion USD) and the total value of assets was 2.3 quadrillion VND (99 billion USD).

PM asks capital management commission to flexibly deal with corporate issues

Prime Minister Nguyen Xuan Phuc on July 17 asked the Commission for the Management of State Capital at Enterprises (CMSC) to take more flexible approach to dealing with corporate issues in line with the law.

Put into operation on September 30, the CMSC has become the State capital representative for 19 State-owned enterprises (SOEs) and corporations with a total of of 2.3 quadrillion VND (98.9 billion USD).

During a working session in Hanoi, the PM lauded the commission for receiving 237 tasks from ministries and completing 97 others, helping SOEs resume stable operations with revenue up 15 percent, before-tax profit up 12 percent, and contribution to the State budget up 31.4 percent.

He also order the CMSC to continue refining mechanisms and working closely with ministries and agencies to fulfill assigned tasks.

The CMSC was asked to strengthen management to improve the efficiency of SOEs operations, including building modern State governance models and improving their competitiveness.

As for SOEs, the leader urged them to adopt modern technology in strategic areas and prevent wastefulness in State equitisation and divestment.

About overlapping decrees and laws, he assigned the Ministry of Planning and Investment to make a report to submit to the Government during its July meeting for consideration.

Relevant ministries must improve their sense of responsibility for assessing several projects, and promptly approve SOEs’ business plans in July as well as restructuring plans.

At the working session, the PM also offered his opinions about CMSC’s suggestions, including reshuffling its operations and personnel. He also allowed the commission to work with ministries, agencies and corporations to employ experienced and qualified officials.

State capital divestment faces pressure

Capital divestment from State-owned enterprises had slowed and was still facing difficulties, said Dang Quyet Tien, director of Corporate Finance Department under the Ministry of Finance.  

Vietnam’s investment arm SCIC to sell state stakes in 108 firms

The Vietnamese government’s investment arm State Capital Investment Corporation (SCIC) has announced the list of 108 state-owned enterprises (SOEs) subject to divestment in 2019, Vietnam Finance reported.